Outsell Inc. issued its latest report “Disruptors in the Financial Information Market: Key New Players in the Ecosystem and Their Impact”
The volume of news and information, both in structured and unstructured data, continues to rise in financial services in support of driving superior trading and investment decisions that help financial institutions competitively differentiate. Interestingly, regulations such as the Dodd-Frank Act and its derivative, the Volcker Rule, have emerged post-economic crisis to ensure that Wall Street adopts a more risk-averse practice designed to protect their clients. Together, this blend of data and compliance requirements is fueling opportunities for emerging financial technology providers that are “thinking out of the box” in their solution approach.
This latest Outsell report analyzes the main drivers of these opportunities and the key players leading the disruption of the financial information industry. It also considers the extent to which the various trends and new players will, or will not, lead to a profound disruption of the financial services industry and offers actionable recommendations to all financial information and technology providers that serve the trading and investment community.
Outsell estimates the financial information market at $28.9 billion in 2012, growing at an average 7% annual pace.
Three key factors drive Outsell’s robust forecast: First, the tightened legislative environment emerging from the post-economic crisis has prompted finance and business professionals to improve their visibility to regulatory requirements. Second, broader use of technologies that enable swift access to financial news and information, such as mobility and advanced desktop technologies, are driving competitive differentiation and thus demand among finance professionals. Third, it has become increasingly critical for finance professionals to gain competitive advantage to survive during the economic recovery – such as having simultaneous access to multiple data sources to accelerate decisions.
Emerging Disruptive Players
It is no surprise that opportunities for emerging technologies are evolving out of a wide range of drivers and external forces now shaping the space. Against this backdrop of market movement, a growing number of startups are emerging and chipping away at the hegemony of traditional financial solution providers. While there has been a robust financial technology market for many years, what is interesting about these new players is the extent to which they are creeping closer to supporting both investment and operational needs of a firm, and not just either one.
Players taking disruptive positions are classified in Outsell’s report including the degree of disruption that they bring to the financial solution market (levels 1 through 5, with 5 being the most disruptive).
Source: Outsell Inc.